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This tutorial will teach you how to install a theme (as a parent), create a child theme and upgrade your theme.
All IPS themes are in .xml format. If you have download a .zip file, extract the file first and you'll find the .xml file inside.
Installing the Parent theme and creating a child
First, we'll be installing the theme as a Parent theme. Parent themes should never be edited and should generally be hidden from all users. Once it has been installed, we'll create a Child theme which can be edited via theme settings (to change colours, logos, etc), and it'll be shown as the default front-end theme to all of your visitors.
1. To install the Parent theme, go to Admin Cpanel > Customization > Themes. At the top right, click the + Add Theme button.
2. From the popup box, choose the Upload Theme tab and select the .xml file from your computer. This tutorial will use the Dimension theme as an example. Press Next.
3. Once it has processed, you'll be returned to the Theme list. Click the pencil icon (aka, the Edit button) to the very right of your theme and deselect all settings and user groups, like so:
This will hide the Parent theme for all visitors. The Parent theme should never be edited beyond this, so press the Save button at the bottom and proceed to creating the Child theme.
4. Click the + Add Theme button again, but this time select Manual Mode and press Next. Enter a Name for your theme (I'll use "My new theme" for this example). In the Parent field, un-check the box and select your Parent theme (from the above step), and if you wish to set it as your Default theme, make sure to enable that setting. I suggest always keeping the "Default AdminCP Theme" feature disabled though! Your page should now look like this:
Press Save and you're done! Your theme page will look something like this:
Clicking the theme name will expand a list, showing your Child theme:
A quick summary: The Parent theme which we installed is hidden from all members, and your site will be using the Child theme, named "My new theme". The Child theme inherits everything from the Parent theme. If you need to edit the theme, make sure you only edit the Child theme. The Parent theme should never be edited and should stay untouched.
Upgrading your theme
When new theme updates are released, browse to Admin Cpanel > Customization > Themes. Click the arrow icon to the very right of your Parent theme and select Upload a new version from the list. Browse for the updated .xml file, press Upload and your theme will be updated!
Upgrading between major versions, such as 4.2 to 4.3 will likely require a fresh theme installation. The above instructions for upgrades will apply to minor upgrades, such as 4.3.0 to 4.3.1.

Hello, so IPS 4.4.3 just came out but i cannot update because its blocked by Deflection theme..
Incompatible Theme
One of your themes is not compatible with the version you are upgrading to because it includes modifications to templates and/or CSS files which this version needs to update. If you obtained the affected theme from a designer you should contact them to ask if a new version of the theme is available for this version. If there is, continue with the upgrade and then update the theme after. If there is not an update available, you may want to remove that theme or wait until a new version is available before proceeding. If you modified the affected theme yourself, you can use the links below to review your customisations. If the customisations are no longer required, you can revert them, otherwise you will need to incorporate the changes made by the version you are upgrading to. For more details on the theme changes in this version, see the Theme Differences Documentation.
LinkMania
core → front → global → quickSearch
core → front → system → reconfirmTerms

I wanted to start a general discussion for the upgrades released by IPS. We know most of the time we have to wait for @Ehren to make changes for the themes to be compatible with new releases but sometimes this might not be needed .
So, is it now safe to upgrade to 4.1.15 or we need an update from @Ehren ?